MYNORTHWEST NEWS

King County court rules against Seattle income tax

Nov 22, 2017, 3:03 PM | Updated: 3:12 pm

Court ruling Olympia man sentenced...

Judge rules in case of an Olympia man. (Flickr)

(Flickr)

The City of Seattle lost its fight for an income tax in King County court Wednesday.

While losing a case in court is usually cause for concern, for Seattle, it plays into the city’s plan to take its income tax to the state Supreme Court.

RELATED: Making the case for Seattle’s income tax

Wednesday’s ruling is celebrated by those suing the city.

“Today’s ruling is a victory for all taxpayers in Seattle and throughout the state, and for everyone who values the rule of law,” said Brian T. Hodges, a senior attorney with Pacific Legal Foundation who represents several Seattle residents in challenging the tax. “Seattle politicians billed their plan as a ‘wealth tax,’ but it’s ultimately aimed just as much at the middle class and even the poor.”

The judgement by Judge John Ruhl essentially states that the plaintiffs’ case has merit. The judge denied the city a summary judgement which would have sped up the legal process and delivered the city a win. The fight against Seattle’s income tax is now over in county court — a waypoint on the city’s course to the Supreme Court. To move it forward, the city will have to appeal.

Seattle income tax

After passing an income tax this year, Seattle was sued by four parties. According to court documents, Seattle argued that “it is time to reverse a long line of Washington Supreme Court decisions, all of which hold that income taxes are ‘property taxes’ and thus subject to the ‘uniformity’ restrictions that art.” It speaks to the city’s ultimate goal to get its income tax beyond King County’s court and to the court in Olympia.

The city also argued that its income tax was actually an excise tax, and that it only applied to total income, not net income which is prohibited by state law. But Judge Ruhl denied the city’s arguments, saying that “the city’s tax is not an ‘excise tax'” and therefore is not authorized by state law.

“By subverting constitutional protections against discriminatory tax schemes, their strategy was to pave the way for more taxes, on more people, at all income levels,” Hodges said. “They also sought to undermine the fundamental principle that your income is your property, protected by constitutional safeguards for property rights. The court performed a service for all taxpayers, and all property owners, by defeating the city’s strategy to undermine their rights.”

MyNorthwest News

Kia Boys...

Kate Stone, KIRO Newsradio and Bill Kaczaraba, MyNorthwest

‘Kia Boys’ allegedly execute a crime spree in south King County

Renton police chased down a 14-and 16-year-old but are still looking for two other teen suspects in what they said was a "crime spree" in south King County.

43 seconds ago

Spanaway woman shot dead...

Kate Stone

Search for shooter continues after woman shot dead while driving in Spanaway

A 47-year-old woman was shot dead in Spanaway, causing her to hit another driver head-on early Wednesday morning.

1 hour ago

nintendo redmond...

Frank Sumrall

Nintendo to lay off 86 Redmond employees this spring

Nintendo of America is laying off 86 contract workers in Redmond, beginning May 25, due to company reorganization.

2 hours ago

Everett boy missing...

Frank Sumrall

4-year-old Everett boy missing, police worried he’s in danger

Police and Search and Rescue crews are looking for a missing four-year-old boy they suspect could be in danger.

3 hours ago

Image: The awnings of a store advertise the sale of lottery tickets, including Mega Millions and Po...

Steve Coogan

Lottery jackpots update: Powerball prize jumps again after $1.1B Mega Millions win

A lottery jackpots update: The Powerball prize reached an estimated $935 million ahead of Saturday night's drawing.

13 hours ago

Photo: The Judge Patricia H. Clark Children and Family Justice Center....

James Lynch

King County’s plan to close youth detention center met with fierce backlash

The King County Law and Justice Committee received a final report on Executive Dow Constantine's plan to close a youth detention center.

14 hours ago

King County court rules against Seattle income tax